1. Field of the Invention
The present invention generally concerns customer loyalty. More particularly, the present invention relates to a customer loyalty application that allows a user in a network of users to earn rewards based on various factors such as interactions with a vendor, interactions with other users, and location.
2. Description of the Related Art
The long-term success of a business not only depends on attracting new customers but also the continual patronage of the business by existing customers. Existing methods that encourage the continued support of a business, product, or service include discount or reward cards, coupons, and promotional mailings or e-mail lists. In a discount or loyalty program, for example, a cardholder or member may earn cash or points redeemable for discounts. The discounts or rewards that are earned by a cardholder, however, are not typically tailored to the cardholder and may be based on other factors such as a merchant's needs (e.g., the need to discount certain products to maximize profits or to reduce aging inventory).
Current loyalty redemption mechanisms also rely on paper coupons or static electronic screen displays. This may make it cumbersome in a busy restaurant environment, for example, to verify the authenticity of the coupon prior to redemption. This may require a cashier to manually match the coupon code with the merchant's record of issued coupons which must then be closed out.
Current loyalty rewards methods do not exploit notable aspects of the digital age including the widespread use of mobile technologies and the constant interactions via social networks outlets and e-mail. Existing loyalty programs thus fail to consider a customer's use of mobile technologies and behaviors in the context of social networks when determining how to best reward customers. There is a need for a system and method for rewarding customer loyalty that tailors rewards based on a customer's actual behaviors, social interactions, and preferences.